While America flounders on every front. friends are confused and foes are maneuvering to take advantage of the situation. To say America’s foreign policy is chaotic, is being kind. America’s monetary policy, whether driven by our insane fiscal policies or is the reason for those same insane policies is debatable. While the three branches of government are behaving like the Three Stooges, the rest of the world is watching and they are not laughing. China, in particular, is not laughing.
China holds about 1,3 trillion in US Bonds. They also are sitting on between $3 and $4 trillion in US dollar denominated assets. They have reason to be concerned. Zhu Guangyao, China’s vice finance minister, gave a little poke to president Obama recently when he said the “clock is ticking” in reference to “ensure the safety of Chinese investments”. He knows, of course, that the US is not going to default on its debt. Maybe he was just giving President Obama another club to use to beat on his Republicans foes.
This Fox News story (with a completely screwed up title} reports that China’s official news agency is calling for a “de-Americanized world,”
“As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world,” writes the Xinhua News Agency.
“. . . the world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites.”
– Xinhua News Agency
“Meanwhile, the U.S. government has gone to all lengths to appear before the world as the one that claims the moral high ground, yet covertly doing things that are as audacious as torturing prisoners of war, slaying civilians in drone attacks, and spying on world leaders.
“Under what is known as the Pax-Americana, we fail to see a world where the United States is helping to defuse violence and conflicts, reduce poor and displaced population, and bring about real, lasting peace.”
LewRockwell.Com carried an article from the English version of Pravda the other day that sheds light on moves being made to gradually dethrone the US dollar. This quote must reflect the views of President Putin and maybe that of China’s leadership, too:
A great invention of the financiers Rothschild and Rockefeller – the U.S. Federal Reserve System (FRS) is a private company that since 1943 (adoption of the Bretton Woods system, the replacement of gold with the dollar as a reserve currency) has been dictating to the world how to live, and where and how to spend money.
While President Obama spent his time at the recent G-20 meeting in St. Petersburg, Russia, trying in vain to convince the other participants that he should be allowed to attack Syria, Russia and China and others were cutting deals.
In St. Petersburg, Russia signed a series of agreements that undermine this monopoly. On the first day of the summit, Gazprom and the Chinese state oil company signed an agreement on the basic conditions of supply of gas and oil and gas development in Russia. It is imperative that the currency of the agreement is the yuan or ruble, and the price of the supplied hydrocarbons will be determined on a bilateral basis without a reference to the Anglo-Saxon index Henry Hub determined on the London Stock Exchange. This guarantees that speculative impact on the Russian economy due, for example, to shale gas supplies, will be minimized.
Another unprecedented step towards getting rid of the monopoly of the dollar is the creation of a stabilization fund of the BRICS countries and the Development Bank. Its goal, as stated by the President of the Russian Federation, is to contribute to the improvement of the financial markets after the U.S. ends the policy of quantitative stimulation. This was a diplomatic statement, but its eaning translated into vernacular formula would sound something like “get lost with your dollar. “The initiative would create a full-fledged monetary union. The BRICS sovereign fund along with the Bank may lend money to the countries participating in the fund without the consent of the Federal Reserve. The residents of these countries represent 44 percent of the world’s population. The Bank will have the opportunity to buy securities of the Fund as well as debt securities of the participating countries. This means a sovereign issue according to the rules of today’s financial market, bypassing the Federal Reserve System. In times of an acute economic crisis launched by the U.S., the fund may take over the function of the new financial center of the world, reducing the role of the compromised dollar to zero.
Our Rome is burning and our leaders are fiddling. America is becoming like Rodney Dangerfield. We can’t get no respect. Respect is hard earned. Once lost, it is difficult to get back.
And, that’s what I’m thinking. What are your thoughts?